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Kering has reported “stable” revenues for the first quarter of 2026, though overall group performance was dampened by a 14% decline in sales at Gucci.
Total group revenues fell by 6% to €3.56bn (£3.1bn) over the period, as sales from the directly operated retail network, including e-commerce, fell by 2%, remaining “uneven” across regions and houses.
Wholesale revenues were up by 6% however, amid a continuing good momentum in eyewear.
While most other houses within the portfolio delivered growth, the significant downturn at Gucci limited the group’s overall sales figures.
Gucci revenues fell to €1.34bn (£1.17bn), with retail sales declining by 9%. Growth of 8% in North America failed to compensate for weaker trends across Western Europe and the Asia-Pacific region for the brand.
Kering stated that a comprehensive turnaround for its largest brand is currently underway. This includes a reset of product architecture and new collection rollouts planned throughout the year.
Elsewhere, the group said the ongoing conflict in the Middle East has “remained an area of heightened attention”. The region currently has around 1,100 employees, 79 stores and accounts for around 5% of the group’s retail revenue.
Kering said a crisis unit was immediately activated at the start of the conflict and continues to monitor the situation in real time.
Over the period, retail revenue in the region fell by 11%, following growth over the first two months of the year. Beyond the localised impact, the group said the “broader consideration going forward relates to potential impacts on global tourism trends and the macroeconomic backdrop”.
Luca de Meo, CEO of Kering, said: “In the first quarter of 2026, group revenue stabilised, marking an important first step in our recovery and a further sequential improvement. This performance reflects the first tangible effects of our actions, despite a challenging geopolitical environment.
“Nearly all our Houses delivered growth during the quarter, with a particularly strong contribution from jewllery. Gucci remains our top priority. A comprehensive turnaround is underway, with decisive actions across client, distribution and, above all, the offer. We have reset the product architecture and strengthened category focus, with new collections rolling out progressively in stores throughout the year.”
He added: “The first quarter of 2026 marked continued progress, as we executed with pace and focus. We have launched a group platform designed to support the growth of our Houses and enhance efficiency, while also taking decisive steps across beauty, jewellery and real estate that have reinforced our balance sheet. I look forward to meeting you on April 16 at our Capital Markets Day, where we will present the Kering strategic roadmap: ReconKering.”
